Single Answer MCQ
Q-00045322

Why are intermediate goods not counted in GDP calculations?

1

They are too complex to evaluate

2

They may be included in multiple final goods

3

They do not generate any economic value

4

They are not sold in markets

Answer and Solution

Answer

B. They may be included in multiple final goods

Solution:

Intermediate goods may be part of several final goods, so including them in GDP would lead to double counting.

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